Monetary Policy

During the meeting, which happened on Wednesday, the 15th Finance Commission observed that the GDP numbers suggest continued high growth over the medium term even though there have been fluctuations within the overall global trend.

Public sector lender State Bank of India (SBI) on Wednesday became the first Indian bank to link its saving and loan interest rates to the Reserve Bank of India (RBI)’s repo rate. The move assumes significance as the effective interest rate from May 1 on savings deposit above Rs 1 lakh will come down to 3.2% from 3.5%.

Inflation as measured by the Consumer Price Index is below the government set target of 4% for 8 months in a row despite volatile crude oil prices and not so sufficient rains in many parts of the country.

"India's ratings balance a strong medium-term growth outlook and relative external resilience stemming from strong foreign reserve buffers, against high public debt, a weak financial sector and some lagging structural factors," Fitch said in a statement.